Q.(a) X and Y are partners in a trading firm. X borrows Rs.9,000/- from P and executes a pronote in the name of the firm. X spends the money in purchasing a plot of land in his own name for his personal purpose. Can P hold Y also liable for the debt? Give reason.

(b) A and B were partners, the later being the managing partner. The partnership was dissolved and its winding up devolved on B. Part of the assets consisted of bales of cotton. A requested B to sell these bales immediately. B delayed in selling them with the result that they were ultimately sold at much lower price than they would have fetched if sold when A desired. A contended that the loss sustained by the postponement of the sale ought to be borne by B alone. Decide. (D.J.S. 1989)


Q.(a) A, B, C, carried on business for profit but under very special condition to C that C, was to contribute neither labour nor money and not to receive any profit but to lend to the firm his name. Is C liable as a partner to third parties and why?

(b) "The law, English as well as Indian, has for some specific purpose, relaxed its rigid application of the aggregate theory, and given to a limited extent, a legal personality to firm". Discuss this statement fully pointing out the true nature of a partnership.

(c) "There is no stronger fiduciary relation known to the law than that of a partnership". Amplify, and state the standard of conduct to which partners must adhere.

(d) A, B, C are partners in a trading firm. C taking no active part in the business. A borrows Rs.10,000 from X and executes a promissory note in name of the firm. He misappropriates the money and utilizes it for his personal benefits. Can X make either B or C liable on the note? (D.J.S. 1990)


Q.(a) "The registration of firm in India is entirely based on the discretion of the firm or partners concerned." Comment on this statement. Is registration of a firm compulsory in India?

(b) Can a minor be admitted as a partner of a firm? If so, can be subsequently ratify or revoke such partnership. Describe the rights and liabilities of such partner.

(c) A suit was brought by two plaintiffs but there was no evidence as to what was the exact contract between them with regard to joint business which was carried on by them and there was not evidence that partnership business was carried on by all or any of partners acting for all nor did the bond upon which suit was based described them as partners in a firm though there was recital in bond which was to the effect that money was advanced from a common fund. Defendant pleaded that suit was barred under section 69 of Indian Partnership Act, 1932. Decide, giving reasons.

(d) A, B and C were partners of a Firm which was not registered. Firm brought a suit for the recovery of debt due from 'X' to the Firm. A, B and C had sent an application to the registrar of Firms in prescribed form and all formalities were completed but the firm was not yet registered. Firm brought a suit against 'X'. Can suit proceed? Discuss. (D.J.S. 1991)


Q. What are the tests to determine the existence of Partnership firm? Discuss. (D.J.S. 1996)


Q. In the year 1970, Ram and Sham entered into a partnership. They agreed that if any one of them died, the firm would not be dissolved but the eldest child of the deceased partner would be taken as partner in the firm. Sham died in 1975. His son Kumar was taken in as partner. In the year 1976, they applied for the registration of firm with Income Tax Authorities. But the ITO refused to register their firm on the ground that on the death of Sham, firm was dissolved. Ram and Kumar cannot be treated as partner. Ram relied on sections 42(c) and 31 of Partnership Act. Do these provisions help Ram for registration of firm? Discuss. (D.J.S. 1996)


Q. A, B and C are partners of firm which has not been registered under section 69 of Partnership Act. X had purchased goods worth Rs.10,000 from the firm on 15.04.1995. Firm filed a suit against X on 01.10.1995 as X did not pay the amount. Firm applied for registration on 15.10.1995 and certificate of registration was issued on 01.11.1995. X filed written statement on 01.12.1995 and also took plea that firm was not registered and suit was liable to be dismissed. How would you decide? (D.J.S. 1996)


Q.(a) Can a partner be expelled? Discuss.

(b) Explain the doctrine of 'holding out' as applicable to the law of Partnership.

(c) A partnership deed provided that in case of death of a partner the surviving partner shall pay to the widow of deceased partner 25% of the profit. One partner died and his widow continued to receive 25% of the profit for several years running into lacs of rupees. The firm ultimately ran into trouble and incurred heavy losses. A creditor of the firm sued the firm as well as widow lady for recovery of his amount. Is the widow liable to pay anything to him? Explain.

(d) What are the consequences of non-registration of firm under section 69 of the Partnership Act? Can an unregistered firm file a suit? Can its registration after filing the suit cure the defect?

An unregistered partnership firm leased out certain premises for a fixed period. After the expiry of lease it filed a suit for recovery of possession. Is this suit maintainable? (D.J.S. 1999)


Q.(a) Briefly state rights and duties of the Partner inter se, under the Indian Partnership Act.

(b) One of the partners of a Partnership Firm had retired from the firm on 01.04.1982. The firm continued carrying on its business. The firm took a loan on 01.03.1985. It was established that the retired partner had neither represented nor permitted himself to be represented that he was the partner in the firm on 01.03.1985. Can he be held liable for the loan taken by the firm on 01.03.1985? Decide in the light of the provisions of the Indian Partnership Act.

(c) Under what circumstances a partnership is dissolved? Briefly discuss the provisions of law as provided in the Indian Partnership Act.

Does death of one of the partners dissolve the firm automatically? What will be the effect of death of one partner, if the partnership is constituted by two partners only?

(d) It is neither compulsory, nor penal for non-registration of the Partnership Firm, yet an unregistered firm suffers from certain disabilities under the Partnership Act. What are those disabilities? Please discuss the same under relevant provisions of the law in this respect. (D.J.S. 2000)


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